WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
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Bill.

Employment Entry Payment & Education Entry Payment

The employment entry payment and education entry payment provide
for the payment of a lump sum amount to people who are on social
security benefits and satisfy certain criteria.

In respect to the employment entry payment, for New Start
Allowance recipients, the payment is available where: they have
been registered with the CES for at least 12 months; they will
cease to be eligible for the allowance because of finding
employment; and that employment is likely to continue for more than
4 weeks. The payment is only available once each 12 month
period.

For recipients of other benefits, other tests apply. The main
other type of test being that the payment may be made when the
person's income exceeds a threshold level and is likely to do so
for more than 4 weeks.

The payment was introduced to help off-set initial costs
associated with commencing employment (clothes, tools, fares etc).
The payment is generally $100 for those 18 and over, and $50 for
those under 18.

The abolition of the employment entry scheme is estimated to
result in savings of $7.605 million in 1997-98, $16.192 million in
1998-99, and $16.192 million in 1999-2000.(1)

The eduction entry payment is similar to the employment entry
payment but applies to situations where people on benefits enter a
full-time education course that is approved under AUSTUDY or
ABSTUDY. The benefit may also be available were the applicant
satisfies the Secretary that they intend to enrol in such a course.
As with the employment entry payment, different criteria may apply
depending on the benefit received before entering education.

The Social Security Legislation Amendment (Budget and Other
Measures) Bill

1996

On 12 September 1996, the Government introduced the Social
Security Legislation Amendment (Budget and Other Measures) Bill
1996 in the House of Representatives. The main amendment contained
in the Bill included:

tightening of the activity test and penalty periods for those
on Newstart and Youth Training Allowance;

abolition of the employment entry payment and restriction on
the availability of the education entry payment.

The proposed amendments abolishing the employment entry payment
and restricting the availability of the education entry payment
gave effect to a 1996-97 Budget announcement. In the Second Reading
Speech to this Bill, the Government provides an underlying reason
for the amendments, that is, that it considers that the payments
were not major factors in influencing social security customers
decisions to return to work or study.

On 10 October 1996, the Senate referred the provisions of the
Bill to the Senate Community Affairs Legislation Committee. The
Committee, which tabled its report on 6 November 1996, recommended
that the Bill proceed and made no reference to the amendments
abolishing the employment entry payment and restricting the
availability of the education entry payment.

While the majority report of the Committee recommended that the
Bill proceed, Senators Neal, Denman, Faulkner, Lees and Woodley
presented a minority report which, among other recommendations,
recommended that the amendments abolishing the employment entry
payment and restricting the availability of the education entry
payment be omitted. The rationale given for recommendation was:

We heard no evidence that these payments were not meeting their
original purpose. In our view administrative convenience is not
sufficient reason to reduce or abolish individual's
entitlements.(2)

The entry payment amendments were not agreed to by the Senate.
The omission of those amendments was passed on the voices. (Senator
Harradine, the Greens, Australian Democrats and the Australian
Labor Party supported the omission of the amendments from the
Bill.)

Item 1 of Schedule 1 of the Bill repeals
provisions relating to the employment entry payment, so abolishing
the scheme.

The effect of items 2-4 of Schedule 1 of the
Bill is to remove the education entry payment to those who are
transferring from special benefits, job search, youth allowance,
Newstart allowance, mature age allowance, widow allowance, mature
age partner allowance, and partner allowance.

Ian Ireland
19 September 1997
Bills Digest Service
Information and Research Services

This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.

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Published by the Department of the Parliamentary Library,
1997.

This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 22 September 1997